At what VAT rate are the import and supply of fuel and petroleum products taxed during the martial law, state of emergency?

Information and Reference Department, published 15 April 2022 at 14:19 Chapter: News

Paragraph 82 Sub-section 2 Section XX "Transitional Provisions" of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that temporarily, for a period of the martial law, state of emergency, supply operations in the customs territory of Ukraine and import to the customs territory of Ukraine of motor gasoline, heavy distillates and liquefied gas, classified according to Ukrainian classification of the FEA products codes, defined in Sub-paragraph 215.3.4. Paragraph 215.3 Article 215 of the TCU, which according to Paragraph 40 Sub-section 5 Section XX "Transitional Provisions", set the excise tax rate at 0.00 euros per 1000 liters, as well as crude oil or petroleum products obtained from bituminous rocks (minerals), classified by Ukrainian classification of the FEA products codes 2709 00 10 00 and 2709 00 90 00, are taxed at the 7% rate.

Amounts of negative value determined for relevant reporting (tax) period according to Paragraph 200.1 Article 200 of the TCU, which includes calculation of the tax liability amount for operations taxable at rate specified in the First clause of Paragraph 82 Sub-section 2 Section XX "Transitional Provisions" of the TCU. Amounts of this negative value are included in tax credit of the next reporting (tax) period.

That is, if the taxpayer who during the reporting period carried out operations for the supply of fuel and petroleum products, defined in Paragraph 82 Sub-section 2 Section XX "Transitional Provisions" of the TCU, the VAT amount determined in the VAT declaration as a result of such reporting period, according to Paragraph 200.1 Article 200 of the TCU, has a negative value (formed both on acquisition operations in Ukraine and imported to the customs territory of Ukraine), such amount of tax cannot be declared (neither in the current reporting period nor in the subsequent reporting periods) for budgetary refunding, including repayment of the VAT tax debt or other tax (cannot be declared in the VAT declaration in lines 20.1, 20.2, 20.2.1 and 20.2.2) and is subject only to enrollment in tax credit of the next reporting period is reflected exclusively in line 20.3 of the VAT declaration).

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